Anyone probably saw this phenomenon: people aren’t retiring at the traditional retirement age because they don’t have enough in their savings and investment portfolio. Simply put, they cannot afford to retire. Once employees hit their late 50s, they should be winding down. They should use their paid vacation leaves and put more money into their retirement fund. They should be asking if it’s possible to have a flexible working schedule, as well as more time to spend with their families.
And yet, somehow, these senior adults aren’t doing it. They’re working 40 hours or more every week. Some of them are looking for side jobs to augment their income. The reasons vary. Many of them had to support their families until their children finish college. Some of them are helping extended families. Then, others suffered financial setbacks because of a medical condition or a business closure. No matter the reason, employers should be alarmed that their employees are not being prudent and smart with their money.
Lately, employers are trying to provide employees with what they need for a work-life balance. They are demonstrating ways to show they’re expanding their loyalty to their employees. Some of the things they are offering are on-site daycare services, flexible work hours, health insurance plans, life insurance policies, and many more such as yoga classes, gym memberships, and access to nutritionists and experts.
Thankfully, employers are also concerned about the financial wellness of their employees. Aside from monetary and wellness compensation, they are also organizing financial literacy programs. These aim to help employees understand the importance of preparing for retirement. Employers are taking on an active role in helping their employees reach their long-term financial plans.
Organizations are partnering with investment firms, stockbrokers, and financial advisers who can provide sound fiduciary advice for their employees. They look for the best in the industry who can hold financial wellness classes and financial literacy workshops. This teaches employees how to manage their finances well into retirement.
Many companies also open a retirement fund for their employees the moment they are hired. Although the employees can choose to close this fund, later on, the employers will usually compensate them for depositing money into this account. Some are even incentivizing their employees who put more than their usual share into the retirement fund. For example, those who use their tax refund to boost this retirement fund will get a bonus from their employers.
There are many simple ways employers can teach employees about sound financial management. The way they run their business impacts how employees understand about money matters, too. Employers should also have subtle ways to encourage their employees to save more. One example is to provide a pantry or lounge area complete with a microwave oven, coffee maker, and dining table, so employees will be encouraged to make their own meals at home to take to the office. They will save more money by not needing to buy their lunch from a fast-food restaurant.
Job Share Program
This allows a subtle transition to retirement. Employers will usually ask retiring employees if they like fewer tasks in the office so that they can work flexible hours. But to shoulder the tasks they will not do anymore, the company has to hire additional staff. This means the retiring employees will have a lower income, though that’s still better than abruptly cutting their financial source.
This is another gradual way of encouraging older workers to retire. The program lasts between six months and five years. Organizations usually offer this kind of program to employees above 55 years old and those who have been with them for years. This is a good program for retirees who are not financially and emotionally ready to stop working. The idea behind this is to ease them into retirement.
Older workers who have been with your company for years can take on a mentorship role in the organization. They can do less work but mentor younger employees. They have vital knowledge to share before retiring. Even after they have retired already, employers can still call them from time to time to lead training and workshops. This is a great way for retirees to feel valued and respected.
Employers have a duty to their employees to help them have better lives even after they have left the organization. This starts from the onboarding process and the benefits and compensation that employers provide their workers. But it is in the years leading to retirement that employers’ concern about their employees’ welfare will be tested.